Generally Speaking,individuals Who Are Unemployed Would Not Be Considered a Target

question 218

Multiple Choice

Generally speaking,individuals who are unemployed would not be considered a target market for Mercedes or other luxury European import sedans because

• A) they would not desire such products.
• B) they would not be willing to purchase such products.
• C) they would not have the ability to purchase such products.
• D) such markets are narrowly defined geographically.
• E) they are not authorized to purchase such products.

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Definitions:

Investment-Demand

The desire or willingness to allocate resources towards investment goods that are expected to yield returns in the future.

Interest Rate

The cost of borrowing money or the return for lending money, usually expressed as an annual percentage of the principal.

Effective Usury Laws

Regulations that set maximum interest rates on loans to protect consumers from excessively high costs.

Loanable Funds

The money available for borrowing in the financial markets, often coming from savings and influenced by interest rates.